Any source of value or wealth that exists only in digital form and comes with a distinct right to use or distinct permission for use. Digitally stored data that do not have those rights are not considered assets. More specifically, a digital asset is an asset that can be stored and traded on a blockchain or other distributed ledger technology.

A digital asset is created, or minted, when new information is added, through an entry, to a particular blockchain. Blockchain entries allow users to exchange existing digital assets and/ or create or mint new ones according to the established process of mining or minting.

Digital assets represent a broad category that encompasses anything minted and exchanged on a blockchain. Examples of digital assets include NFTs, utility tokens, and similar types of assets that are created and can be tracked on the blockchain. Broadly classified, digital assets come in five categories: crypto assets, stablecoins, non-fungible tokens, central bank digital currencies (CBDCs), and security tokens.

As a term, “digital asset” is often used interchangeably with “virtual asset” to denote the same thing, but in certain contexts they are overlapping. There are certain key conceptual and practical differences between the two terms. All virtual assets are digital assets, but not all digital assets are virtual assets. In order to be a virtual asset, a digital asset must possess its own value and shall be able to be exchanged for other forms of assets.

The term “virtual assets” is primarily used for market participants’ experience with online transactions and virtual venues. Digital assets, on the other hand, can serve a variety of other purposes such as storing important data, creating and distributing content, and facilitating transactions. All digital assets are virtual assets, and all crypto assets are digital and virtual assets, but not all digital assets are crypto assets and not all virtual assets are digital assets.